05:44 AM EDT, 05/29/2024 (MT Newswires) -- Merck ( MRK ) has agreed to buy Eyebiotech for up to $3 billion, the Financial Times reported on Wednesday, citing the chief executive of the takeover target, also known as EyeBio.

The deal consists of a $1.3 billion upfront payment, plus up to $1.7 billion in development, regulatory and commercialization milestone payments, according to the report, citing EyeBio Chief Executive David Guyer.

EyeBio's drug restoret, which is in early-stage trials, is a potential treatment for diabetic macular edema and age-related macular disease, which are forms of blindness.

The acquisition is expected to boost Merck's ( MRK ) pipeline as its cancer drug Keytruda comes off patent by 2029, the report said.

Merck ( MRK ) and EyeBio did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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